In the multi-million Microsoft remand: what would ktMINE find?
After reporting the $358 million reversal of fortune in Lucent Technologies, Inc. v. Gateway, Inc., 2008-1485, -1487, -1495 (Sept. 11, 2009) (see BVWire# 84-2)—in which the court remanded the case for calculation of patent infringement damages, finding neither party’s evidence “powerful” or “well-presented“—we wondered what the experts would find at ktMINE in terms of comparable [...]
One auditor’s expectations for 123R/409A valuations
A top-flight valuation practice just had a call with the audit/valuation team at one of the Big 4 accounting firms, in which the auditors expressed several specific points to consider in the context of FAS123R, Share-Based Payments, and 409A valuations. Although we can’t name the players—their detailed conversation makes clear that each auditing team has [...]
Lawyers: The expert who knows the business best, ‘wins’
A panel of top-flight litigators followed the judges at the Chicago Divorce Summit, with candid comments on what they look for in financial experts: • “If I can get you to shave your report—you won’t work for me,” said Stephen Kolodny (Kolodny & Anteau, Beverly Hills). “Because that means you’ll shave it for someone else.” [...]
And while we’re at it: How to get more BV work from lawyers
“One thing comes right to the top,” says Mark Sobel. “First, go out to young lawyers associations, since most of these have no idea what the income approach is.” Stephen Kolodny also recognizes that new BV experts are not going to break in with long-established firms…”you have to work your way up with new lawyers,” [...]
Judges say: Don’t get so intoxicated with your values
What makes a financial expert credible to a court? That was just the first in a series of provocative questions that sparked a dynamic panel discussion between four judges at last Thursday’s BVR Summit on Business Valuation in Divorce, co-sponsored by NACVA and ASA in Chicago. Highlights: “I can tell you what makes an expert [...]
In business valuation arms race, shoe leather is still #1
The rapid development of valuation tools, methods, and data sources are no match for shoe leather. Indeed, as Warren Miller describes them, on-site visits and interviews are the best – perhaps the only – way to unearth the true causes of valuation characteristics and drivers: “If we can’t explain [aberrant metrics], we don’t really understand [...]
The only two numbers in divorce valuation
“There are only two numbers you need to know in divorce valuation,” laughs Kevin Yeanoplos: “$0, if you’re representing the in-spouse, and a gazillion dollars if you’re representing the out-spouse.” Of course, there’s the third one that hopefully can bring some resolution; the appraiser’s conclusion of value.
What’s the status of comingled funds?
Each venue has different standards as to whether comingled funds are alwayscommunity or separate, for the sake of marital dissolution. In Colorado orCalifornia, for example, even separate funds which are comingled in a jointaccount are presumed to be "gifts" to the marital property. Other statesare less clear on this (like Michigan or New York) but [...]
Creative valuation solutions are still hard to find in divorce settlements
Every one knows that families have less income now than they did beforethese harsh economic times. But, the impact on valuations performed tohelp distribute assets in divorces have been particularly profound. Thistopic is central to the opening session today at BVR's 2nd Annual DivorceSummit. At the most basic level, courts are starting to see testimony [...]
A common misperception about professional goodwill
“Many people think that personal goodwill is exclusive to the owner,” says Jim Alerding (Clifton Gunderson), “but it’s not true. I had a client whose business was related to the railroad industry, and 95% of their business came from repairs.” The clients for this part of the business all came as a result of the [...]
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